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Crystallex International Corporation is a Canadian-based gold company with a successful record of developing and operating gold mines in Venezuela and elsewhere in South America

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Message: Re: Venezuela with the worst business climate in Latin America

Re: Venezuela with the worst business climate in Latin America

posted on Feb 20, 2009 05:20AM

So many disregarded the Venezuelan Political/Corruption risk and got attached in a very unhealthy emotional way to the story and the forum/bullboard commaraderie that develops, at times oblivious to the slashings that have taken place and certain facts presented market wise.

Agreed. No doubt our current precarious status is most likely the result of Venezuelan corruption\political risk. With that as a backdrop, it is not unlikely that Fung refused to play ball with these corrupt sleazebags under the table. Arguably...a company like Rusoro was more amenable to "less than above board" dealing with "high level officials". The silver lining in that scenario is that as much as these Venezuelan political sleazebags would like to put their heads in the sand...they cannot alter the fact that Crystallex has a binding and legal contract that will be arbitrated in accordance with international treaty upon expiration of the May deadline. Further....Venezuela has the funds to pay our anticipated handsome award (I'm not a lawyer but I'm assuming we have a rock solid case as a result of the steadfast conformance to the MOA by KRY management). Sadly, at this point, it would appear that we have more to fear from our own bondholders than Venezuela. If our bondholders prevail in court...we are most likely roadkill....or in the best case put in the position of having to take whatever offer may be laid on the table that could be considered a better alternative to shareholder sudden death. There are some big money shareholders of this stock. I wonder if the probability of being able to redeem themselves financially via arbitration would be an incentive for them to try to work a deal to finance payment of bondholders. I'm not sure how this works, how much the bondholders are owed, etc., etc. Any thoughts on this topic would be appreciated. No Bear? Bueller?

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Feb 20, 2009 07:30AM

Feb 20, 2009 07:48AM

Feb 20, 2009 07:53AM
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Feb 20, 2009 01:11PM
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